HMC Grows External AUM to $5bn Following Proposed HDN Merger with AVN
Home Consortium (ASX:HMC) is pleased to announce that HMC and HomeCo Daily Needs REIT (ASX: HDN), (together HomeCo) have entered into a binding Scheme Implementation Deed (SID) with Aventus Group (ASX:AVN) to acquire all AVN securities via schemes of arrangement, subject to certain conditions (the Merger).
The Merger brings together HDN and AVN’s highly complementary portfolios and significantly accelerates HMC’s growth and scale with external AUM increasing to approximately $5bn (+127% versus FY21), which is 12 months ahead of HMC’s stated $5bn 2022 target. Including the impact of the Merger and barring any unforeseen events, HMC upgrades its forecast FY22 pre-tax FFO per security guidance to 26.0 cents which represents an upgrade of 41% on prior guidance and 89% growth versus FY21.
HMC CEO and Managing Director, David Di Pilla said: “The industrial logic of this transaction is very compelling for HDN unitholders and AVN securityholders. The combination of HDN and AVN creates a leading ASX listed Daily Needs REIT with a highly strategic $4.1bn portfolio of last mile logistics infrastructure in Australia’s leading metropolitan growth corridors. This transaction is consistent with our strategy to build high quality portfolios exposed to powerful megatrends and enhanced by best-in-class management teams. For HMC, the transaction demonstrates the scalability of our platform and our ability to execute large scale M&A transactions to significantly grow external AUM. This transaction positions HMC well ahead of its stated target to grow external AUM to $5bn by the end of 2022.”